If You’re Over 30 and Tomorrow’s Tax Deadline is Making You Sweat; Read on!
I say over 30 because I was under 30 once with small children and ALWAYS got a refund, so by the time the tax deadline hit, I was so over taxes (and had spent my refund already).
Thanks to some great online publications there is help or at least some clarity in filing your taxes. I actually was so afraid of owing, and initial estimates showed that I would be right I put off finishing up my taxes and filing until yesterday afternoon. (like I would have the expected monies owed more so today than in February)
Let's start with some typical myths about taxes:
- E-filing will increase your chances for an audit; Not True! The IRS, according to an article in the USAToday says how you file has nothing to do with how they select filers to be audited, in fact e-fling can potentially lessen your odds of being audited as electronic filing has proven to be more accurate. Same is said of filing for an extension, by the way if you need to file for an extension, do so by tomorrow (April 17, 2012) to avoid additional penalties.
- On filing for an extension, this does NOT give you more time to pay. The tax debt is due on the tax deadline, this year that deadline is April 17, 2012.
- Self-Employed write-off(s): just because you use your car for business if you use it for personal use as well, you cannot write-off your car 100%. It will be a percentage of usage, most online products have step by step questions that will help you do this.
- Self-Employed Continued: a desk and a computer that the kids use for homework cannot be deducted, your work station must be exclusively for work.
- Adult kids that have come home: not necessarily a deduction even if you are supporting them with free rent and food. If your 20 something child has come back and dropped out of school, he/she is Not likely eligible to be claimed as a dependent.
- Emails about your upcoming refund are Not legit, the IRS does Not email you about your refund, this is likely a scam to steal from you.
- A big refund isn't a good thing, you have essentially loaned the government your money interest free for a year. It's best to have a small refund or even owing a small amount, you then know that you have used your money in the best way possible.
- Here's a big one... paying taxes is NOT voluntary! What is voluntary is you filing your taxes and adding deductions etc... verses the government just sending you a bill.
However you feel about taxes , you are likely not alone. Whether you're taking one for the team or really love participating in this annual event-Happy Tax Day Eve! :)